Central tendency on share price remains $10, like it has for a couple years. That level has a stronger pull than Magnetic North. Since the mid-April high of $14+ per share there has been a clear descending channel in place marked by lower recovery highs and lower lows. Stochastics are also reading overbought near term. See stock price hemmed in around the $10 per share level for a few years. A likely Euro decline well below $1.00 parity presents a significant headwind the next two years. I am forecasting a Euro rate of $0.70-$0.75 to the U.S. dollar before a bottom is reached. That could be tough on a company deriving half or more of its sales outside the U.S., not to mention one that also still has no CFO in place to address the issue.
There is no good business model for the company as a standalone entity. There is simply too much volatility and uncertainty in the business. It needs to be a small division within a much larger company.
At December 31, 2013 the company had nearly $10 million in cash and virtually no debt. Since that time, it has almost all been pi$$ed away, substantial leverage has been taken on, and the company has recorded net losses. So spending all that cash and incurring significant debt has only resulted in negative earning per share. There really should be some sort of advanced genomic testing for business acumen before you allow someone to become CEO. The former CFO left not long ago. Numbers guys can read the tea leaves. He knew when to get out of Dodge before the final unwind. It is very much like watching a train wreck in slow motion.
PRCP habitually misses on quarterly earnings, they surreptitiously omit the dividend, they have an executive flight problem (only one executive remains), they have weakened the Balance Sheet, they have recorded negative cash flow from operations through the first nine months of fiscal 2015, they have no visibility in their base business beyond the quarter they happen to be in, the new products and acquisitions are imponderables for at least a few more quarters, Helix technology may be revolutionary or at least evolutionary but has not benefitted the P&L or cash flow statement despite being touted for years, the member Board of Directors are nearly all in their 70s. Bottom line, the company is being under managed by a group of old men and one executive. Be careful. They seem not to give a wit about either their shareholders (based on the recent lack of disclosure) or the stock price (based on a 33% decline in two months). They seem complacent and content, or at least indifferent. The institutional holders of the stock are equally complacent and indifferent to recent developments. It's not like you have Icahn or Ackman or Cooperman in your corner here pushing for change.
Hope the lenders like to golf. They are going to own the golf courses. This is a pretty clear equity wipe-out. Massive money pit in Ohio. Who the hell vacations in Ohio?
Given a 30% share price decline in less than two months they should probably comment on that basis alone. At a minimum there should be something said about the regular annual dividend. Saying nothing is almost inexplicable. The stock is well into bear market territory and they are in hiding. That is not a good sign.
It was clear following the last annual shareholder meeting they had enough votes to oust the Board, remove the poison pill, and force sale of the company. Instead they have failed to act. And so they can sit back and watch today as Cognex sells its comparably sized continuous in-line surface measurement and inspection system for about 3X sales. What remains here is a confused mess of delays, a missed dividend payment, executive resignations, blown quarterly results, and throwing of spaghetti agains the wall to see what sticks. Helix, yeah right, Helix.
Great technology, but apparently no one that knows how to run a company or what Wall Street is looking for. Somebody out there has to specialize in under-managed situations that have great technology but little else. Gotta be some PE firm's bailiwick.
Yeah, only about three weeks left in the fiscal year. Probably not enough time to declare a dividend, set an ex-date and payable date by June 30. Figured the co. would have said something though---in the interest of transparency or just common courtesy to their shareholder/owners. That's what well run companies do. Ma or Pa Jones shareholder in Dubuque, Iowa may not be able to read the tea leaves or figure it out, and they shouldn't have to. Companies should be forthright w/their owners. Perhaps the co. didn't want to give the covering analysts yet another negative item in print w/which to have to respond.
maybe they should take out and service $10 million of debt at 3.5% (the going rate of prime +.25%) for four years and use the money to buy back about 10% of the outstanding common shares. The believe they are undervalued relative to their peers. They believe the acquisitions will be earnings contributory by the end of fiscal 2016 in about a year. Why not put some money where their mouth is?
the Greece issue will likely be kicked down the road until the end of June, but they cannot delay beyond that. They should be cut loose now and just get it out of the way. Greece thinking they have any leverage at all is ridiculous. Most European banks have had plenty of time to gear up for a Greek default. If they have not done so, shame on them. This has clearly been visible as a probable outcome for five years.
feels like institutions frozen and small retail raising cash 10 to 100 shares at a time. Not that there is much retail in the market, almost negligible, but what is there is trying to liquefy.
Both for stocks and bonds. Some micro caps dropping multiple percentage points on less than 1,000 shares. Almost like a buyer's strike until Greece is resolved and the Fed's first hike is out of the way. MM's just marking everything down.
well, tens of thousands, probably many more play FanDuel and Draftkings daily for that amount or less---w/much less favorable odds. I'm not saying i's a good strategy and it's not my cup of tea, but you also need to realize they may be "playing" with 10-20 stocks or more any given day--so the $100s add up if you win a majority of the bets. Is it a fool's game? probably. Do I think it is happening? Absolutely.
The one thing that makes some sense is the pattern of trading which has been in place for a very long time (over a year). Modest to moderate run-ups when there is good news, followed by persistent selling into that news. My guess is that it is simply day traders having a field day since you rarely see hundreds of thousands of shares trade, even on event news, and the largest institutional holders for the most part are standing pat w/their positions. It is just a stock that is really hemmed into lighter volume channel trading until something blockbuster occurs. Of course defining blockbuster only becomes easy after you see it and the stock move significantly higher on say closer to one million shares traded. I am sure the BOD is very frustrated by all of it, but if they could have done something they would have by now. Day traders or someone actively sitting on the stock are the most likely culprits, but I lean toward the former.